Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on May, 2026
• The company is engaged in providing OOH advertising services in Maharashtra.
• The company marked constant growth in its top and bottom lines for the reported periods.
• It is operating in a highly competitive and fragmented segments.
• Based on its recent financial data, the issue appears fully priced.
• Well-informed investors may park moderate funds for long term.
ABOUT COMPANY:
Simca Advertising Ltd. (SAL) is in the business of providing advertising services, with a focus on Out of Home (“OOH”) media in Mumbai and Maharashtra. It offers a range of OOH advertising solutions that help brands reach people in public spaces. These include hoardings, gantries, bus side and back panels, bus shelters, kiosks, utilities, and vinyl signage.
The company works across different advertising formats and locations to help clients communicate with their target audiences. By understanding different audience groups and their habits, it can plan and execute campaigns that match the client’s goals and budgets. Its services include selecting the right locations and creating media plans that aim to deliver value and reach. The company supports clients with end-to-end OOH campaign execution, helping them use public space as a communication channel to increase awareness and visibility.
The advertising industry in India is experiencing dynamic growth, driven by evolving consumer behaviors and rapid digitalization. It operates a portfolio of over 100 Out-of-Home (OOH) media assets across Mumbai, covering high-traffic locations such as arterial roads, major junctions, commercial hubs, and market areas. These assets include a mix of static hoardings, gantries, and digital LED displays. The sites are primarily operated under lease or sub-lease arrangements from the promoters and third-party owners. The strategic placement of these media sites across the city enables consistent visibility and audience reach, making Mumbai its core operational geography for outdoor advertising.
The Company counts one LED board as six media assets, as each LED board operates on a slot-based commercial structure. Every LED board contains six slots, and each slot has the capability of displaying up to six different advertisements during a cycle. This structure enables an LED board to generate higher advertising inventory and revenue compared to a static board. It operates a portfolio of over 100 Out-of-Home (OOH) media assets across Mumbai, covering high-traffic locations such as arterial roads, major junctions, commercial hubs, and market areas. These assets include a mix of static hoardings, gantries, and digital LED displays. The sites are primarily operated under lease or sub-lease arrangements from the promoters and third-party owners. The strategic placement of these media sites across the city enables consistent visibility and audience reach, making Mumbai its core operational geography for outdoor advertising. Maharashtra has the lion share in its top lines. The company currently serves 133 clients (including 3 Government sector) and out of this, 33 are repeated clients. It uses 78 static billboards and 72 LED bill boards as of December 31, 2025. The company employed 31 personnel on its payroll as of the said date.
ISSUE DETAILS/ CAPITAL HISTORY:
The company is coming out with its maiden book building route combo IPO of 3171600 equity shares of Rs. 10 each to mobilize Rs. 58.04 cr. at the upper cap. The company has announced a price band of Rs. 174 – Rs. 183 per share of Rs. 10 each. The minimum application to be made is for 1200 shares and in multiples of 600 shares thereon, thereafter.
The issue opens for subscription on May 08, 2026 and will close on May 12, 2026. The shares will be listed on NSE SME Emerge. The IPO constitute 26.49% of the post-IPO paid-up capital of the company. From the net proceeds of the fresh equity issue, it will utilize Rs. 23.50 cr. for working capital, Rs. 12.72 cr. for purchase and installation of LED screens, Rs. 5.00 cr. for funding strategic collaboration with Capital World Media Services Pvt. Ltd. for monetization of LED screens, and the rest for general corporate purposes.
The IPO is solely lead managed by Socradamus Capital Pvt. Ltd., and MUFG Intime India Pvt. Ltd. is the registrar to the issue. Giriraj Stock Broking Pvt. Ltd. is the market maker. Intellect Stock Broking Ltd. is a syndicate member.
The company has issued entire initial equity capital at par value. It also issued bonus shares in the ratio of 175 for 1 in May 2025. The average cost of acquisition of shares by the promoters is Rs. 0.06, and Rs. 0.24 per share.
Post-IPO, company’s current paid-up equity capital of Rs. 8.80 cr. will stand enhanced to Rs. 11.97 cr. Based on the upper band of the IPO pricing, the company is looking for a market cap of Rs. 219.08 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has posted total income/ net profit, of Rs. 11.96 cr. / Rs. 1.57 cr. (FY23), Rs. 49.31 cr. / Rs. 5.78 cr. (FY24), Rs. 75.09 cr. / Rs. 9.98 cr. (FY25). For 9M of FY26 ended on December 31, 2025, it earned a net profit of Rs. 10.68 cr. on a total income of Rs. 78.16 cr. The company marked quantum jump in its top and bottom lines from FY24 onward, that raise eyebrows, as well as concern over its sustainability going forward, as it is operating in a highly competitive and fragmented segment.
For the last three fiscals, the company has reported an average EPS of Rs. 8.23 and an average RoNW of 70.92%. The issue is priced at a P/BV of 5.42 based on its NAV of Rs. 31.87 per share as of December 31, 2025, but its post-IPO NAV data is missing from the offer documents.
If we attribute FY26 annualized super earnings to its post-IPO fully diluted paid-up equity capital, then the asking price is at a P/E of 15.39, and based on FY25 earnings, the P/E stands at 21.97. The issue appears fully priced based on its recent earnings.
The company has posted PAT Margins of 13.10% (FY23), 11.71% (FY24), 13.31% (FY25), 13.73% (9M-FY26), and RoCE margins of 127.47%, 104.50%, 76.57%, 50.89%, respectively for referred periods.
DIVIDEND POLICY:
The company has not paid any dividends for the reported periods of the offer document. It has adopted a dividend policy in March 2025, based on its financial performance and future prospects.
COMPARISON WITH LISTED PEERS:
As per the offer document, the company has shown Bright Outdoor, as its listed peer. It is currently trading at a P/E of 42.1 (as of May 04, 2026). However, they are not truly comparable on an apple-to-apple basis. This compare is nothing but an eyewash.
MERCHANT BANKER’S TRACL RECORD:
This is the 5th mandate from Socradamus Capital in the last three fiscals (including the ongoing one). Out of the last 4 listings, 2 opened at discount, and the rest with premium ranging from 17.65% to 75.93% on the date of listing.
Conclusion / Investment Strategy
SAL is engaged in providing OOH advertising services in Maharashtra. The company marked constant growth in its top and bottom lines for the reported periods. It is operating in a highly competitive and fragmented segments. Based on its recent financial data, the issue appears fully priced. Well-informed investors may park moderate funds for long term.
Review By Dilip Davda on May, 2026
Review Author
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detailed fundamental and financial analysis of companies coming up with IPOs helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
Courtesy: https://www.chittorgarh.com/
